Food, fuel imports rise

Statistics compiled by the Ministry of Finance indicate that rising prices pushed food imports up to P9 billion in the first eight months of the year, about 35% higher than the corresponding period last year. Pressure on fuel prices saw imports of the commodity rise to P12.2 billion between January and August, compared to P6.9 billion over the same period last year, an increase of more than 75%. Finance ministry researchers said the higher imports this year largely reflect the impact of Russia’s invasion of Ukraine, which has triggered increases in global food and fuel prices since February. Inflation in the country peaked at 14.6% in August, representing a 14-year high, driven by pressure on food and fuel prices and the impact of this across the economy. The Bank of Botswana has raised interest rates three times this year to keep a hold on inflation expectations, a measure which has had low success as the firms’ projections of inflation in the short term continue to rise.